Funds grow at Rathbones
LIVERPOOL investment manager Rathbone Brothers has seen funds under its management swell to £14bn.
The figure, for the three months to March 31, represents a 7.3% increase since December.
Rathbones said this growth has been helped by last year’s acquisition of the Bank of Scotland’s Portfolio Management Service from Lloyds Banking Group.
So far the deal has pumped £600m into the firm’s managed funds. But chairman Mark Powell will tell shareholders at today’s annual meeting that organic growth has also played a significant role.
“Rathbone Investment Management had a strong first quarter which benefited from good growth in funds under management, stronger equity markets and high commission levels,” Mr Powell will say.
“Organic and acquired growth in our investment management business was an annualised 11.1% in the three months to 31 March 2010 (2009: 8.1%). To date, our recent transaction with Lloyds Banking Group has introduced some £600m of new funds and over 3,000 new clients to Rathbones.
“Our positive first quarter results should be seen against a backdrop of a fragile world economy and the unknown impact of the general election in the UK. Rathbones has a strong balance sheet with minimal borrowings and is well positioned to take advantage of future growth opportunities.”
Net operating income rose 6%, year on year, to £29m during the period.
